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Topic X IP Issues in Outsourcing & Exports: The Challenges

What is Outsourcing? Vendor (Outsourcee) A company’s retaining a 3rd party to perform some function that was or would be performed by the company itself Customer (Outsourcer) Transferring a company’s non-core functions to another service providing company so that it can focus on its core business

Why is Outsourcing Necessary? Vendor (Outsourcee) Customer (Outsourcer) Logical Reason - efficiency - Empirical Evidence - boom -

Why is Outsourcing Necessary? - The same reason international trade is more efficient than local self-supply - Somebody can do the same job more efficiently or with lower cost Logical Reason

Why is Outsourcing Necessary? ,[object Object],[object Object],[object Object],[object Object],Empirical Evidence

Why is Outsourcing Necessary? ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Areas of Outsourcing

Outsourcing: KIPO’s Experiences 1st Step: Non-core jobs (cleaning, security) - from the 1980s 3rd Step: Even semi - core function (searching) - from the New Millennium 2nd Step: Information Technology (KIPOnet) - from the 1990s

Outsourcing: IP Office of Singapore Even Core Business ,[object Object],[object Object],[object Object]

Outsourcing: IP Office of Singapore SurfIP ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]

Merits & Demerits of Outsourcing ,[object Object],[object Object],[object Object],[object Object],Merits Demerits ,[object Object],[object Object],[object Object]

Risk Management of Outsourcing ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]

Outsourcing to/from SMEs Outsourcing being common to SMSs Outsourcing more imperative for SMEs - globalization due to the Internet - indispensable IT network - endless effort to reduce cost in all aspects - great opportunities to expand markets - limited human resources and experiences - no expertise accumulated as a multi-player

An offshore vendor must show: ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]

Due Diligence in Offshoring ,[object Object],[object Object],[object Object],[object Object]

Due Diligence in Offshoring ,[object Object],[object Object],[object Object],[object Object],Estimate on the Success of Offshoring

IP Issues in Outsourcing ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Non-disclosure agreement

IP Issues in Outsourcing ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Practical Protective Measures

IP Issues in Outsourcing ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Ownership of IP Developed During Outsourcing

IP Issues in Outsourcing ,[object Object],[object Object],[object Object],[object Object],Ownership of IP Developed During Outsourcing Unique Requirements in China

IP Issues in Outsourcing ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Prevention of Unfair Competition in China

IP Issues in Outsourcing ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Prevention of Unfair Competition in China

IP Issues in Outsourcing ,[object Object],[object Object],[object Object],[object Object],[object Object],Infringement of a 3 rd Party IP Right: Indemnification

Termination Provisions Think of Divorce before Marriage - Anything under the sun made by man is perishable. - Divorce is more expensive than marriage if there is no agreement prepared beforehand. ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]

Non-competition Clause ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]

Conclusion ,[object Object],[object Object],[object Object],Importance of Good Agreement Re-emphasized Outsource outsourcing-related decisions! - Do not waste your energy for the outsourcing matters

Thank you! any question/comment to Chaho JUNG at [email_address]

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